Originally Posted by
MickG0105
True but the good faith and best interest obligations on Directors are notoriously low bars to clear. And bear in mind that Rex's majority shareholding sits in the hands of half a dozen people headed by Lim. It would not be difficult to manufacture majority shareholder approval for any strategy that they want to run. Moreover, price point competition is a legitimate 'break in' tactic despite the overpowering whiff of desperation associated with this effort.
Getting a majority vote from a few large shareholders won't relieve the BoD of its responsibilities. It would be minority shareholders who didn't have board representation who would initiate an action against the BoD not the larger shareholders who the court would say had Board influence Class action lawyers are skilled in grouping these small shareholders together and getting funding from US investors who fund the claim action and take lots of the upside if they win.